Hyundai Motor Co. has made an offer to buy second-hand autos for the first time, offering the manufacturer a guaranteed price for them.
The deal, reported by The Wall Street Journal, comes as China and other emerging markets are seeking to attract manufacturers of high-quality second-home-based autos, as they face a steep drop in the demand for electric vehicles in the world’s second-largest economy.
Under the terms of the deal, Hyundai Motor is offering the buyer an initial 50,000 yuan ($79,000) down payment, with the final offer to be announced in the next two weeks, according to the report.
The offer comes at a time when Hyundai Motor has been facing rising costs from a series of manufacturing issues, including the recall of its 2017 model, which was recalled by China in May over a software problem.
It is also a time of heightened competition in the Chinese market, with more automakers and dealers offering cheaper or free second-homes to consumers.
The company has also been struggling to meet the demand of first-time home buyers.
The company has struggled to make money selling second- and third-hand cars since it introduced the Galaxy S8 in March, after selling just 2,600 cars in the same period a year earlier.
The price of the cars has remained at about $1,000, and the price of a secondhand Hyundai Genesis is about $4,000.
The automaker is also looking to expand its car-buying program by offering discounts on cars from major manufacturers like Toyota and Nissan.
The Korea Times reported that Hyundai Motor would sell its Hyundai Genesis for the price it would cost to buy the car from a dealership, a price that would put it out of reach for most of the country’s middle-class consumers.
Hyundai Motor’s first-hand-car purchase comes as Chinese automakers are looking to gain a foothold in the region.
Earlier this month, China’s largest automaker, China National Motor Corp., said it would launch its first vehicle-leasing service in Hong Kong, in partnership with the local branch of the Hyundai Motor Corp.
The WSJ reported that the deal could be made as early as this week.
Hyundai Motor’s secondhand-auto offer comes a week after China’s leading carmaker, Dalian Wanda Group Co., announced a $20 million funding round, which it said would help the automaker improve its manufacturing process.